Judicial/ Non-Judicial Foreclosure: Available/ Available
Right of Redemption / Deficiency Judgment: Yes / Yes
Timeline: 120 Days, Can vary depending on individual cases
Deed of Trust / Mortgage as Security Instruments: Deed of Trust, Mortgage
Both Judicial and Non-Judicial foreclosure processes can be followed in Nevada.
Judicial Foreclosure process:
If a power of sale clause is not included in the Deed of Trust or Mortgage documents, a Judicial foreclosure process may be used. The Judicial foreclosure process involves the lender filing a lawsuit against the borrower in case of their default. The court verifies the same and gives an order authorizing the foreclosure sale if its convinced about the payment default. Once the order is obtained, the property is sold off to the highest bidder through a public auction.
In the Judicial foreclosure process is used, the borrower has a right of redemption for up to 12 months by which they can pay up their dues and reclaim their property.
Non-Judicial Foreclosure Process:
If the power of sale clause is present in the Deed of Trust/ Mortgage documents, a Non-Judicial foreclosure process can be used. The power of sale authorizes the lender or their authorized representative (referred to as Trustee) to conduct the foreclosure sale, in case the borrower happens to default on the loan. The following guidelines can be followed for the same.
In case the power of sale document contains the guidelines for the foreclosure process like the time, venue and other terms, it is followed as such. Otherwise, the following process is followed.
A notice of default needs to be recorded at the recorder’s office present in the county to which the property belongs to. This notice should be mailed to the borrower in their last known address via registered post (with return receipt request) on the same date of completion of the recording process. All other procedures like advertisements, etc are carried out in the same way as applicable to an execution sale in the state of Nevada.
The borrower gets a time of 15 – 35 days from the date of recording and mailing of notice before which they need to pay up all their dues in order to prevent the foreclosure sale. They can also file an ‘Intent to cure’ notice with the Public trustee’s office up to 15 days before the Foreclosure sale. They can then pay up all their dues and re-claim their property till noon of one day prior to the foreclosure sale.
Otherwise, the foreclosure sale is conducted on the date, time and location as advertised in the notice of sale. It is conducted in a similar way to how a real property is sold off.
In case the value offered by the highest bidder is less than the total amount due by the borrower, the lender can file for a deficiency judgment and get it done within three months from the date of sale of the property. Once the property is sold, the borrower does not have any right of redemption on the same.